Category Archives for Legal/taxes

The Right Entity for Your Business May Not Be What You Think!

Many people are operating a full or part-time small business and seeking to incorporate for tax reasons, professionalism, and liability protection.  However, most of them are getting it wrong in choosing an entity. The popular thing to do is form an LLC (limited liability company) because it is simple and requires less formalities than a […]

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“Release” Yourself from Liability

People settle claims out of court all the time, and that is often the smart thing to do. But, most people forget the one simple step that is crucial to the process. This simple step, if omitted, can result in a future lawsuit against you, even if you allegedly settled the claim. Consider the act of […]

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7 Reasons to Use Land Trusts

Trusts

You wouldn’t walk around with a financial statement taped to your back, would you?  Then why are you holding title to your real estate in your own name?  Whether it’s your personal residence or your rental properties, you are a “sitting duck” for disgruntled tenants, ex-employees, ex-spouses, the IRS and their attorneys.  Real estate is […]

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Real Estate Dealer Tax

Many people buy and flip properties in their own name, particularly when getting started.  The danger here is that the income earned from these activities could be subject to unwanted taxes, particular the real estate dealer tax. Capital gains, exchange rules and installment sales rules apply for properties held for “productive use.” I.R.C. §1234. If […]

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Personal Property Trusts

Trusts

 If you have been reading my articles, you are probably familiar with the concept of creating and using land trusts for privacy and protection of your real estate. However, what about your ownership of notes, mortgages, deeds of trust, leases and options that may appear on public record? What about cars, boats, mobile homes and […]

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What Is A Series Limited Liability Company

Most of you have heard of a Limited Liability Company or LLC. A cross between a sole proprietorship or partnership and a corporation, LLCs acts as a shield protecting your personal and business assets from liability in the event of a lawsuit. The Series Limited Liability Company, or SLLC, takes it a step further. What […]

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Basics of the Real Estate Contract

The real estate contract is the most often used, yet little-understood tool in the real estate business. Whether you are a rank beginner or seasoned expert, there is no excuse for not knowing and understanding the real estate contract. Real estate contracts are based on common law contract principles, so it is important that you […]

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How to Hire a Real Estate Attorney

No real estate course or seminar is a substitute for a good attorney. Finding a good real estate attorney may be difficult, since most attorneys are not themselves investors or familiar with creative transactions. Most attorneys will give you just enough advice to keep them from getting sued, but not enough advice to show you […]

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There’s No “Due on Sale Clause” Jail

 The “due-on-sale” clause is probably the most talked about, feared and misunderstood topic in real estate. This article will dispel any misunderstandings you may have about the due-on-sale and explain how to take a property subject to an existing mortgage. What is the Due-on-Sale Clause? Before we discuss how to get take a property subject to an existing […]

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How to Save Up to 90% on Title Insurance

Land Trusts

If you have ever bought or sold real estate, you have probably paid for title insurance. What exactly is title insurance? Why do we need it? How can I save money on title insurance? These are common questions asked by real estate investors, both rehabbers, and landlords. Whenever title passes, the seller usually gives a deed […]

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